PTEA hails EU approval of duty free access

RECORDER REPORT

FAISALABAD: Textile exporters have hailed the European Parliament’s approval of duty free access for 75 Pakistani items and hoped that passage of the waiver will lead to increase textile exports to the European Union (EU) by 30 per cent and will generate significant economic activity in the country.

Talking to newsmen Rana Arif Touseef, Chairman Pakistan Textile Exporters Association (PTEA) said on Monday that Pakistan has been trying hard for duty free access EU to enhance its exports and this would be a good sign for the ailing value added textile industry especially home textile exports, which are badly suffering due to various factors.

Pakistan’s exports to EU can surge by at least 30 to 40 per cent or 700 million dollars to 1 billion dollar in value if we fully utilize our existing potential and capacity in 75 items, now enjoying duty free access to the EU for two years, he added. European Parliament decision would help Pakistan to build up its capacity to become a more effective and competitive actor in international economic relations, he said and added that this would create more opportunities in domestic industry, resulting not only in competitiveness, jobs growth, exchange of technological know how, and development of skills but also lead to the empowerment of people to meet present and future challenges, he hoped.

He said that Pakistan’s export of these 75 items to EU stands at USD1.4 billion, which is about 27 percent of Pakistan’s total export of USD5.1 billion to the European Union. The export of USD1.4 billion in these items under the present tariff structure is a clear indication that Pakistan can raise its share manifold if allowed duty free access in European market.

Sounding upbeat about the future, Rana Arif Touseef said that textile industry have the potential to achieve export targets after getting duty free access to European markets, however, he is quick to add that much will depend on the availability of a regular supply of gas and electricity to run the manufacturing units.

Pakistan is unlikely to fully utilize the European Union preferential trade deal due to severe energy crisis in the country, Pakistan’s textile exporters will not be able to benefit from the concessions unless the government takes serious measures to resolve energy shortage that holds back the textile industry, he added.

He was confident that value of Pakistan’s exports to EU can go up significantly, provided exporters are facilitated by the government in terms of utility supply round the year.

PTEA Chairman pointed out that the EU was Pakistan’s traditional market and these concessions would help to boost Pakistani exports and increase trade volume with EU. He urged the government to complete its groundwork for getting GSP plus status.

He urged the government to get full benefit from this passage of the waiver, uninterrupted supply of gas and electricity to the industry should be ensured.